Santee Cooper schedules new vote on record loan

CHARLESTON — Santee Cooper has scheduled a second vote to authorize its record $1.34 billion bond sale in response to questions about whether the first approval was legal.

The directors of the state-owned utility will revisit the issue at their Aug. 19 board meeting as “a precautionary measure,” said Mollie Gore, manager of corporate communications.

“They will consider it again,” Gore said Monday.

The public power provider approved the debt sale Thursday at a “special” unscheduled board meeting without telling local news outlets 24 hours in advance, as required under the S.C. Freedom of Information Act.

The utility violated another part of the so-called sunshine law by failing to notify The Post and Courier, said Columbia media attorney Jay Bender, who represents both the newspaper and the S.C. Press Association.

As a result, the meeting was illegal, Bender said. He also said the board’s approval of the bond sale could be “set aside” if challenged in court.

The Post and Courier, which is a member of the press association, had specifically asked Santee Cooper in April to provide notification about all board meetings. Such requests are covered under the sunshine act.

Santee Cooper said the notice didn’t go out because the only staffer who was aware of the request was on vacation last week.

Bender said Monday that he was informed by Jim Brogdon, the utility’s top lawyer, about the decision to vote a second time on the bond sales next week “to make sure everything was done appropriately.”

Bender applauded the decision.

“I think that’s a signal the board understands the seriousness of its lapse with respect to notice of a special meeting,” he said.

P.J. Browning, publisher of The Post and Courier, said: “We are pleased with the decision and believe this is a positive way to handle this situation.”

Santee Cooper reiterated Monday that it believed it had complied with the law. It posted the agenda for Thursday’s meeting in the lobby of its Moncks Corner headquarters and on a section of its website Tuesday night.

The utility also said it is reviewing its policies about how it notifies the media and the general public about its board meetings.

The bond sale marked the biggest sum ever borrowed by a public agency in South Carolina at one time. Santee Cooper plans to use the proceeds to refinance older debt and pay for part of the expansion of the V.C. Summer Nuclear Station and other big projects.